July 2012

Why Study Marketing?

Plays an important role in society

Vital to business survival, profits, and growth

Offers career opportunities

Affects your life every day
Marketing is too important to be left to the
marketing department.

--David Packard, Hewlett-Packard
Personal Selling?
Advertising?
Making products available in stores?
Maintaining inventories?

What is Marketing ?

All of the above, plus much more!
What is Marketing ?


A Philosophy
A Function
A Management
Orientation
A Set of Activities,
including:
Products
Services
Pricing
Promotion
Distribution

What is Marketing ?

The American Marketing Association Definition

Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual and
organizational goals.

What is Marketing ?

Other
Functional
Areas
Branding
Test
Marketing
After Sale
Service
Personal
Selling
Physical
Distribution
Pricing
Sales
Promotion
Advertising
Product
Development
Market
Research
MARKETING
Needs , Wants & Demands
Marketers , Prospects & a Market
Product or Offering
The Exchange Concept
Developing Competitive Advantage
Market Segmentation & Target Markets
Marketing Environment
Marketing Mix
Marketing Channels
Supply Chain






Needs are basic human requirements which need to be fulfilled in
order to survive.



The needs become wants when they are directed to specific
objects that may satisfy the need.



Demands are wants or desires backed by ability to pay &
willingness to buy specific products.



A Marketer is someone seeking a response from another party ,
called the prospect.



A Market is a group of people or organization , with needs or wants
& with the ability & willingness to buy.










Product is any offering that can satisfy a need
or a want.




Brand is an offering from a known source ,
which identifies a sellers product &
differentiates it from the competitors product.
The Exchange Concept

Desire to Deal
With Other Part
Freedom to Accept
or Reject
Something of
Value
Ability to
Communicate Offer
At Least Two
Parties
Necessary
Conditions for
Exchange
Exchange involves obtaining a desired product from someone by
offering something in return.

The Exchange Concept

Exchange may not take place even if
conditions are met

An Agreement must be reached

Marketing occurs even if exchange
does not take place
A Transaction is a trade of values between two parties, on monetary or
barter basis.

A Transaction involves several dimensions :-
At Least Two things of value
Agreed upon conditions
A time of agreement
A place of agreement

Transfer differs from transaction , it can take place without consideration.








Create
Customer
Value
Maintain Customer
Satisfaction
Companies Create
Competitive Advantage by
Stressing Customer
Importance
Retain customers &
build Long term
relationships
Customer value is the bundle of benefits
customers expect from a given product
or service.

Its no longer enough to satisfy the
customer , you must delight them!

Customers are value maximizers

Marketing is process of Value Creation
between two entities through the
process of transaction.


Customer Satisfaction is a consumers feelings resulting
from comparing a products outcome in relation to his/her
expectations.

A marketer must meet or exceed customers
expectations.

Focus on keeping customers satisfied.

Provide solutions to customers problems.





Customer retention is about developing loyal customers & building
long term relationships.

The key to customer retention is customer satisfaction.

A Highly satisfied customer

always stays loyal to the company .
pays less attention to competing brands & is less sensitive to price.
Costs less to serve than new customers as the transactions become
routine.
Talks favorably about the company & its products.


Market Segmentation is a process of dividing a market into
meaningful, relatively similar, identifiable segments or groups.

identifying those segments that offer greatest
opportunity to serve.

The selected market segment becomes the Target
Market.

The marketer develops a market offering for each
Target Market.








Marketing mix is a set of marketing variables that the firm uses to pursue
its marketing objectives in the target market.

E.Jerome McCarthy classified these variables ,which he called the four Ps
of Marketing.
PRODUCT

PRICE

PLACE

PROMOTION
Apart from the 4 Ps of Marketing , there have been attempts to
develop an extended marketing mix to better accommodate
specific aspects of marketing.

People

Process

Physical Environment
Customer Analysis



Competition Analysis



Company Analysis
The 3 Cs Model comprises of :

Marketing Channels link the marketer to the target customers.

To reach to the target customer the marketer uses three kinds of
channels.

Communication Channels
To deliver & receive messages from target buyers.
Distribution Channels
To display or deliver the physical product or service to the
buyer or user.
Selling Channels
To effect transactions with potential buyers.







Examples of Marketing Channels
The Supply Chain is the connecting link from the raw materials &
components to final products which are delivered to the buyers.







The Production Concept
The Production concept holds that consumers will prefer products
which are widely available & inexpensive.

Achieving high production efficiency

Low costs

Mass distribution

less developed countries

Market expansion
Marketing Management Philosophies

The Product Concept

The Product concept holds that consumers will favor the most
quality , performance or innovative features

Product Excellence & Quality Assurance

The Management & Product Love Affair

Marketing Myopia
Marketing Management Philosophies

The Selling Concept


The Selling concept holds that consumers & businesses if left
alone ,will ordinarily not buy enough of the organizations products.

Aggressive selling & promotion effort

Unsought goods & non profit areas

Hard Sell vs consumer wants

Overcapacity



Marketing Management Philosophies

The Marketing Concept

The Marketing concept holds that consumers a business should start
with the determination of consumer wants & end with the satisfaction
of those wants.

Consumer Orientation

Integrated Management

Customer Satisfaction

Competitor Intelligence

Realization of Organizational Goals


Marketing Management Philosophies
Involves building long term mutually satisfying
Relations with key parties , in order to earn &
retain their long term preference & business.

Marketers have realized that the success of marketing depends upon
relationships with :

Customers
Distributors
Dealers
Suppliers

The operating principle is simple:
build an effective network of relationships with key stakeholders &
profits will follow.




Are companies that do an excellent job of
satisfying consumer wants, necessarily
acting in the best ,long run interests of
consumers & society ??












Societal Marketing =

Consumer Satisfaction + Company s Profits +
Societys well being

Societal Marketing Focuses on satisfying customer
needs &
wants while enhancing individual &
societal well-being

Information for Marketing Decisions

Accomplishment of firms objectives

Widens Markets

Reputation

Helps to Develop Brand Loyalty

Helps to introduce new product

Helps to face competition

Movement of goods
Meaning
Center / Focus
Perspective
Target Market Focus
Marketing Mix
Process
Nature of Process
Price Determination
Inter-functional Integration
Views on customer focus
Market



Gather, analyze, interpret information about environment
Understand organizations mission and marketings role
Conduct a market opportunity analysis
Implement the marketing strategy
Evaluate marketing efforts and make changes
Develop a marketing strategy
E-Commerce / E-Marketing

Web / Internet Marketing

Marketing using social networks



Business done online.

The biggest development in commerce since invention of
money.

Changing the way people work , buy & Live.

Involves exchange of products , services , information &
payment through the electronic medium of
computers/networks.

E-commerce results when a firm connects its business
systems to its customers , distributors , vendors etc








It is the umbrella term for the entire spectrum of activities such
as electronic data interchange , electronic payment systems ,
order management , information exchange & other business
applications with paperless or electronic documentation.


Ecommerce has three broad components

B
B to B
B to C







A Firms efforts to communicate , promote & sell its
products & services over the internet.

Interactive form of marketing

The two components of web marketing are :

Marketing to Business Buyers
Marketing to ultimate consumers









We can view web marketing in four ways :
A Business
A Medium
A Marketing Channel (or tool for channel less marketing)
A Complete Market place

Elevation of the Web from a medium of communication to a
marketing channel to a complete market place.

The largest, most dynamic, sleepless, electronic bazaar/mall
of goods and services , the world has ever seen!!







Electronic Presence

Advertising On-Line

Forums, Newsgroups, Bulletin Boards & web
communities

Email & Web casting





Convenience

Scope for informed & competitive buying

Search advantage & options
Bargain!!
Can get more for less
Transparency
Accuracy

Shift of the power equation








Access to all markets.

Renders global marketing feasible for even small firms.

Helps constraints-free growth.

Scope for enhancing customer value & customer service.

Helps Relationship building

Helps reduce costs

Enhances productivity of sales people

Enables to adjust quickly to market conditions

A versatile medium of communication.








All products do not lend equally well for Web marketing

Limitation of examining the product

Problem of Delivery

Problem of confidence

Problem of payment

Low Density of PCs & internet

Legal Problems






Banking Industry

Entertainment Industry

Information Service

Stock Broking

Airways

Hotels

Others






Legal / Regulatory Problems
E-documentation is not yet legally admissible
Absence of Taxation Law

Infrastructural Problems
Low density of telephone, PCs & internet access
Infrastructural bottlenecks

Commercial Problems
Problem relating to payment
Low density of credit cards
Inability to pay foreign suppliers

Other Problems
Confidence in the system is low
Problem of Hacking
Problem of Illiteracy